EU's Green Hydrogen Sector Requires Immediate Action to Avoid Stagnation

The European Union’s ambitious targets for green hydrogen are at risk of being unmet unless significant support is extended to electrolyser manufacturers, warns the Electrolyser Partnership. Despite existing investments in the construction of electrolyser gigafactories, many remain unused due to a stark lack of demand and supportive policies.

The Electrolyser Partnership, established under the European Clean Hydrogen Alliance in 2022, has voiced concerns in a detailed position paper for the upcoming Clean Industrial Deal. The paper highlights the critical gaps between current policies and what is needed to ensure the EU meets its climate and energy targets through robust industrial strategies.

Key Issues and Recommendations

The primary challenges identified by the Partnership include regulatory ambiguities, delays in target implementations at the national level, high electricity costs, slow development of hydrogen infrastructure, and an uneven international playing field. These issues collectively hinder the operational readiness and economic viability of electrolyser factories across Europe.

To address these challenges, the Electrolyser Partnership has laid out several key actions for EU policymakers:

Increase Demand for Hydrogen: Encourage the development of markets for green products like steel, fertilizers, and e-fuels that incorporate hydrogen in their processes.
Regulatory Simplification: Streamline hydrogen-specific legislation to foster a more coherent and enforceable framework.
Strengthen Industry Resilience: Establish a fair and competitive marketplace for European electrolysers by ensuring reciprocal international trade conditions and protecting domestic supply chains.
Enhanced Financial Support: Clarify and expand existing EU funding mechanisms to de-risk the hydrogen sector and stimulate further investment.

Industry Response and Future Steps

The urgency for these measures is underscored by the Electrolyser Partnership’s call for action, which stresses that without immediate and effective intervention, Europe risks falling behind in its global leadership in green technology.

Jorgo Chatzimarkakis, CEO of Hydrogen Europe, highlighted the sector's potential, stating, "The electrolyser industry must ramp up its manufacturing capacity tenfold within the next five years to meet the EU's goal of 20 million tons of renewably produced hydrogen by 2030."

As part of its efforts to catalyze industry progress, the Electrolyser Partnership is set to convene its first meeting in September, following a call for interest among Clean Hydrogen Alliance members. This meeting aims to forge stronger collaborations between manufacturers, suppliers, and policymakers to advance the EU’s industrial leadership in renewable hydrogen production.

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